After last remarks of Janet Yellen (Fed Chairwoman) last week which came to confirm Fed confidence with economic growth, while today US labor market data may provide more clue whether a chance for rate hike this month may take place or not
After last remarks from Yellen “ case for rate hike strengthen in last few months” she followed that with new tone which Fed decision to increase interest rate will depend on continues improvement of those factors, in addition of some Fed officials statement that they want to see continues strength on labor market before head to rate hike.
Some economist seeing that continues strong labor market need today to see figures for Non-Farm Payroll above 180K may strong the case for rate hike this month, while they see that any numbers above 100K will be enough to sustain strength for labor market .
The other factor today will be the (average hourly earnings) which as we explained in our Blog before, that this figure can be relay on to anticipate the future movement of Inflation (CPI) where market today expect those numbers below estimation, if came above expected this will give push for Dollar.
While other economist heading toward different approach , where they expect Fed to delay rate hike after finishing the presidential race next November, which may delay any rate hike until the last meeting of this year in December .
Notice that Fed Chairwoman (Janet Yellen) announced last year that should prepare market before any rate hike, which eliminate any chance for any surprises by sudden rate hike, and so the officials remarks after today figures will provide much more info about Fed intentions